Economics For Today
9th Edition
ISBN: 9781305507074
Author: Tucker, Irvin B.
Publisher: Cengage Learning,
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Chapter 4, Problem 14SQ
To determine
Describe positive externalities.
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Chapter 4 Solutions
Economics For Today
Ch. 4.2 - Prob. 1YTECh. 4.2 - Prob. 2YTECh. 4.2 - Prob. 3YTECh. 4.2 - Prob. 4YTECh. 4.3 - Prob. 1YTECh. 4.3 - Prob. 2YTECh. 4 - Prob. 1SQPCh. 4 - Prob. 2SQPCh. 4 - Prob. 3SQPCh. 4 - Prob. 4SQP
Ch. 4 - Prob. 5SQPCh. 4 - Prob. 6SQPCh. 4 - Prob. 7SQPCh. 4 - Prob. 8SQPCh. 4 - Prob. 9SQPCh. 4 - Prob. 10SQPCh. 4 - Prob. 1SQCh. 4 - Prob. 2SQCh. 4 - Prob. 3SQCh. 4 - Prob. 4SQCh. 4 - Prob. 5SQCh. 4 - Prob. 6SQCh. 4 - Prob. 7SQCh. 4 - Prob. 8SQCh. 4 - Prob. 9SQCh. 4 - Prob. 10SQCh. 4 - Prob. 11SQCh. 4 - Prob. 12SQCh. 4 - Prob. 13SQCh. 4 - Prob. 14SQCh. 4 - Prob. 15SQCh. 4 - Prob. 16SQCh. 4 - Prob. 17SQCh. 4 - Prob. 18SQCh. 4 - Prob. 19SQCh. 4 - Prob. 20SQ
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- Instructions There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers. a. What are economic profits? Explain in detail. b. Do economic profits harm the interests of consumers? Explain in detail. c. Can there be a socially useful outcome when economic profits exist? Explain in detail. d. Do lower prices always benefit consumers? Explain in detail.arrow_forwardThe laissez-faire price system a. Assures economic efficiency even when there are externalities. b. Allocates goods to those who are willing and able to pay for a good. c. Is always inefficient. d. Assures a minimum, fair standard of living to everyone.arrow_forwardSuppose that when farmers grow tomatoes, they use pesticides that leak into the ground water and cause people living near tomato farms to get sick. This is an example of a: Select one: a. negative production externality. b. positive consumption externality. c. positive production externality. d. negative consumption externality.arrow_forward
- Rising prices for a natural resource stimulatea. the development of complements for the resource.b. the development of substitutes for the resource.c. the development of externalities from the resource.d. All of the above are correct.arrow_forwardMarket failure can be caused by Select one: a. externalities and market power Ob. government intervention and price controls O c. high prices and foreign competition d. low consumer demandarrow_forwardQuestion 29 E G H What kind of externality is depicted above? a. Positive Production Externality b. Negative Consumption Externality c. Positive Consumption Externality d. Positive Production Externality Supply MS B Demandarrow_forward
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- Question 1. What is meant by "the market system?" Question 2. How is the market system justified? Question 3. What, exactly, is "fraud?" Quesetion 4. What is an "externality?" Question 5. What is "market failure?"arrow_forwardRefer to Figure. The graph represents a market in which 24 22 22 Price 18 16 81 Social cost (private cost and external cost) Supply (private cost) Demand (private valne) 120 160 Quantity a. Othere is no externality. b. Othere is a positive externality. c. Othere is a negative externality. d. The answer cannot be determined from inspection of the graph.arrow_forwardAssuming that a problem is “convex,” net benefits are maximized when a. Producers select a level of production where internal benefits equal external costs. b. Producers select a level of production at which costs equal benefits. c. Producers engage in an activity up to the point where marginal benefit exceeds marginal cost. d. Producers engage in an activity up to the point where marginal benefit equals marginal cost. e. Producers engage in an activity up to the point where total average revenue exceeds total average cost.arrow_forward
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